Study: Female Leadership Results In Higher Profits

Article written by Angela Hydes, Marketing and Content Contributor. Follow us at @TALGroup.

A recent study by the Peterson Institute for International Economics and EY has revealed that a definite correlation exists between female leadership and organization profitability. In fact, companies with at least 30% female directorship had net profits up to 6% higher than organizations with no women at the helm.

Why This Matters

This is the first report of its kind to determine that gender diversity has positive impacts on profits. According to Marcus Noland, EVP at the Peterson Institute,

The first is that there is evidence that the presence of women contributes to functional or skill diversity among the leadership group enabling top management to more effectively monitor staff performance. The other is discrimination: If some firms discriminate against talented, hardworking, effective women, then they will be outperformed by rivals that don’t discriminate.

Paternity Implications

The study also found that paternity leave policies hold the key to achieving gender parity. Specifically, countries with the greatest gender balance tended to also have robust paternity leave structures in place.


To quote Entrepreneur:

“The report’s hypothesis is that offering paternity leave increases expectations that men will take on a share of child care responsibilities. It stands to reason that policies that allow child care needs to be met but do not place the burden of care explicitly on women increase the chances that women can build the business acumen and professional contacts necessary to qualify for a corporate board.”


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